hi guys
newbie here and rookie into property market ….
i have a current mortgage of 200 K
spoke to bank – advised i can get 200 to 250 ( with my current equity )
want to enter into IP market …
did some research … been to seminars …
more confused than before ….
looked at leased out cbd properties – ( hotels,,, student accomodation )…
spoke to bank — they cant lend …
scared off after reading thru forums …
looked at option of buying land — the one;s with 10% d eposit … and may be resell if it appreciates before settlement …
( this area is very grey ….)
what are the pros and cons of buying and selling land — costs involved ….
my situation
on 75 k ( incl super)’
single income as we just had a baby ..
will be like that for atleast 1 year…looks like I dont have much options with borrowing 250 k
my goals
not expecting as not earning much
in next five years ..want to have 2 IP’s which can manage themselves ( rent offsetting the repayments )…
after 5 years – positive cash flow of 2500 per month ( paying off ppor)
looks like i cant do it ..
one more thing — the bank said if I re-draw and use it for my IP – I cant claim for tax
didnt understand clearly what does it mean – can some one explain
as a single bread winner – cant take much risk ..
at the same time — can wait for 1-2 years for wife’s income but prices will skyrocket ..
so catch 22
serious suggestions please …
how to best invest 200 – 250 k ….
You need to get more realistic goals.
It's OK to aim high but it's useless to pluck a dream out of thin air and wish for it.
You have very little deposit, little income but in 5 years you want 2 properties that will return $2500 a month? That means from 2 properties the rent would have to be $583 ON TOP of your interest, rates, insurance etc.
Read some investment books for basics on borrowing etc for starters.
Hi penti
Dont think your in a bad position and structured correctly no reason why you cant achieve your goal.
Your Bank are right you cant claim the interest on a redraw.
Suprised to be honest most Bankers say you can and then the clients only find out at tax time that they cant when their Accountant disallows the deduction.Course by then the loans officer or Banker has moved and no-one wants to take responsibility.
Simple loan structuring will get you what you and with motivation no reason why you cant get there.
To be honest i am not convinced your average Bank johnny has any idea.
All you have to is ask them how many properties they own. Most havent even paid off their PPOR.A mortgage broker is independant, acts for the client and not the Bank and should be able to offer you free unbiased advice on loan structures and products that suit your needs and not the Banks.
Any other quiestions just ask away.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
hi catalyst
u are right .. but I think I might have confused u a bit there
what I meant was – 2 ip's ( paying for themselves )
and completely paying off my ppor
richard
thanks for your advise…
when u say loan structuring – do you mean refinancing
I know that I dont have much to play with …
after some serious look
i have shortlisted the following
suggestions please
if I cant get – zone1 ( melbourne ) 1 bed apartments ( not student accomdation as banks cant lend me )
buying land and onsell
looking at regional properties ( returning good rental yeild )
pros and cons on above ..
any others can you suggest
one quesiton with negative gearing : how much % of negative gearing can you claim
what can be claimed on inv property and what cant be ….
waiting for your reply
penti
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